UPDATE: Barclays Double Upgrades L Brands (LB) to Overweight

(updating comment)

Barclays analyst Adrienne Yih upgraded L Brands (NYSE: LB) from Underweight to Overweight with a price target of $30.00 (from $16.00).

The analyst comments "We believe there is meaningful upside to LB shares if either management or the activist announce measures to improve the business and unlock inherent asset value. Fundamental changes could include real estate rationalization, inventory reduction, cost reduction, or redirection of brand positioning. Structural changes could include separation into two companies, a take-private transaction of Victoria's Secret (VS), or leadership and/or board changes. Performance at VS has collapsed with too many stores, too much inventory, and too many promos, while Bath & Body Works (BBW) has maintained peak operating margins north of 20% (albeit with recently increasing promos)."

For an analyst ratings summary and ratings history on L Brands click here. For more ratings news on L Brands click here.

Shares of L Brands closed at $19.98 yesterday.

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